Atlanta Real Estate Blog | Karen Cannon, Realtors

Top 10 Home Design Trends to Take into 2022

The pandemic has changed the way many of us think about our home spaces. Between Tiktok and Instagram, the stream of ideas and inspiration is endless. From trendy plants to new kitchen cabinets, many of us have replaced small items or renovated entire rooms from floor to ceiling. With the year ending, it’s no wonder we want to revisit some of the best home décor trends of 2021:

Detail in the ceilings

The ceiling or the “fifth wall” became the show stealer this year. Many opted for neutral-colored walls and a characterized ceiling. If you’re looking to update your master bedroom or living area, try adding wood detailing or beams.

Home offices were light and neutral

A lot more people are working from home these days and we can officially say that calming colors, smooth textures and bright lighting were the necessary component this year for offices.

Thank Tiktok for the “cottagecore” trend

What the internet has named “cottagecore”, is the accumulation of warm colors, soft textures and lived-in pieces like repurposed coffee tables and bookcases. If you’re looking to bring some cottagecore to your home, try incorporating floral printed pillows and repurposed furniture.

Vintage furniture is here to stay

If you’re looking for a unique twist to your home there’s no better place to look than your local flea markets. Last year, Chairish – a vintage retailer – had a 60% increase in sales, and Statista reported that the “furniture resale market” will most likely see an increase of 70% by the year 2025. Vintage isn’t going anywhere any time soon, so next time you want to add some bookends or a new armchair for the living room, try opting for a vintage piece.

Maximalist is the new minimalism

“Maximalist design is all about expressing your individuality and unique perspective. Maximalists don’t care what the ‘Joneses will think; they design for their own joy,” said award winning designer, Courtney McLeod. If you have an eye for unique design, try incorporating a colorful couch, bold lamps and fun lighting to bring a little maximalist to your life and into your home.

Bringing the outdoors inside

The old farmhouse style of plants that have taken over our houses for the last decade are slowly going out of fashion. Instead, they are being replaced with a “less is more” approach that balances between trendy and functional. If you’re looking to up your plant game, try incorporating potting options that are sculptural and have a design life of their own.

Shaker cabinets have been all the rage

If you still have the early 2000s, cherry or walnut cabinets that you are desperate to get rid of, look no further than shaker cabinets. Shaker cabinets are narrower than your typical kitchen option and feature more streamlined edges. It’s a classic style that isn’t going anywhere soon, so you can invest your money without feeling wasteful.

Modern country design has been the best of both worlds

This is for the homeowners that can’t decide what home décor is for you. The combination of modern and southern lifestyle has taken on a life of its own. It’s an idyllic classic that meshes warm, homey vibes with neutral tones and simple lines.

Bringing vacation home

There’s nothing worse than walking into a friend’s bathroom and seeing truly awful stylings of anchors, starfish and seashell-shaped towel hooks. When we say coastal décor trend, we are thinking more on the side of open and airy décor that invokes the feeling of sitting near the seaside.

Open shelving provided a fresh kitchen style

Raise your hand if you have loathed putting away the dishes simply because of the opening and closing of the cabinets. Turns out there’s a solution that just so happens to be a trending décor option. Open shelving in the kitchen has been noted by HGTV as a trend that “doesn’t seem to be showing any signs of slowing down.” If you aren’t sold on the idea, HGTV suggests taking the doors off your cabinets to “ease” into it.

Source: TheList.com

What the New Year Will Bring for the Real Estate Market

Why It Just Became Much Easier To Buy a Home

Since the pandemic began, Americans have reevaluated the meaning of the word home. That’s led some renters to realize the many benefits of homeownership, including the feelings of security and stability and the financial benefits that come with rising home equity. At the same time, many current homeowners have decided their house no longer meets their needs, so they moved into homes with more space inside and out, including a home office for remote work.

However, not every purchaser has been able to fulfill their desire for a new home. Here are two obstacles some homebuyers are facing:

The ability to save for a down payment
The ability to qualify for a mortgage at the current lending standards

This past week, both of those challenges have been mitigated to some degree for many purchasers. The FHFA (which handles mortgages by Freddie Mac, Fannie Mae, and the Federal Housing Administration) is raising its loan limit for prospective purchasers in 2022. The term used to describe the maximum loan amount they will entertain is the Conforming Loan Limit.

What Is the Difference Between a Conforming Loan and a Non-Conforming Loan?

Investopedia explains the difference in a recent post:

“Conforming loans are the only loans that meet the requirements to be acquired by Fannie Mae and Freddie Mac. Jumbo loans, which exceed the conforming limit, are the most common type of nonconforming loan.”

What Difference Does It Make to Me as a Home Buyer?

A Forbes article earlier this year explains the benefits of a conforming loan and why they exist:

“Since lenders can’t sell non-conforming loans to Fannie Mae or Freddie Mac to free up their cash, they’re a bit riskier for the lender. This is especially true for jumbo loans, which aren’t backed by any government guarantees. If you default on a jumbo loan, it’s a huge blow to the lender.

Thus, lenders generally charge higher interest rates to compensate, and they can have even more requirements. For example, lenders who give out jumbo loans often require that you make a down payment of at least 20% and show that you have at least six months’ worth of cash in reserve, if not more.”

What Happened Last Week?

The FHFA has significantly increased its Conforming Loan Limits for 2022. Sandra L. Thompson, FHFA Acting Director, explains in the press release that:

“Compared to previous years, the 2022 Conforming Loan Limits represent a significant increase due to the historic house price appreciation over the last year. While 95 percent of U.S. counties will be subject to the new baseline limit of $647,200, approximately 100 counties will have conforming loan limits approaching $1 million.”

This means that more homes now qualify for a conforming loan with lower down payment requirements and easier lending standards – the two challenges holding many buyers back over the last year.

The Federal Housing Administration (FHA) also increased its Conforming Loan Limits for 2022. That could also mean an easier path to homeownership for many prospective buyers. As the Forbes article explains:

“FHA loans can be very beneficial if you don’t have as much savings, or if your credit score could use some work.”

Bottom Line

Buying your first or your next home may have just gotten much easier (less stringent qualifying standards) and less expensive (possibly lower mortgage rate). Let’s connect to discuss how these changes may impact you.

Resources:

To get more information on the new FHFA Conforming Loan Limits, click here.
To get more information on the new FHA Conforming Loan Limits, click here.

Explore current Dunwoody homes for sale, Sandy Springs home for sale, and Chamblee homes for sale.

Experts Project Mortgage Rates Will Continue to Rise in 2022

Mortgage rates are one of several factors that impact how much you can afford if you’re buying a home. When rates are low, they help you get more house for your money. Within the last year, mortgage rates have hit the lowest point ever recorded, and they’ve hovered in the historic-low territory. But even over the past few weeks, rates have started to rise. This past week, the average 30-year fixed rate was 3.09%.

What does this mean if you’re thinking about making a move? Waiting until next year will cost you more in the long run. Here’s a look at what several experts project for mortgage rates going into 2022.

Freddie Mac:

“The average 30-year fixed-rate mortgage (FRM) is expected to be 3.0 percent in 2021 and 3.5 percent in 2022.”

Doug Duncan, Senior VP & Chief Economist, Fannie Mae:

“Right now, we forecast mortgage rates to average 3.3 percent in 2022, which, though slightly higher than 2020 and 2021, by historical standards remains extremely low and supportive of mortgage demand and affordability.”

First American:

“Consensus forecasts predict that mortgage rates will hit 3.2 percent by the end of the year, and 3.7 percent by the end of 2022.”

If rates rise even a half-point percentage over the next year, it will impact what you pay each month over the life of your loan – and that can really add up. So, the reality is, as prices and mortgage rates rise, it will cost more to purchase a home.

As you can see from the quotes above, industry experts project rates will rise in the months ahead. Here’s a table that compares other expert views and gives an average of those projections: Whether you’re thinking about buying your first home, moving up to your dream home, or downsizing because your needs have changed, purchasing before mortgage rates rise even higher will help you take advantage of today’s homebuying affordability. That could be just the game-changer you need to achieve your homeownership goals.

Bottom Line

If you’re thinking of buying or selling over the next year, it may be wise to make your move sooner rather than later – before mortgage rates climb higher. Get started today by checking out our Dunwoody homes for sale, Sandy Springs home for sale, and Chamblee homes for sale!

The Main Key to Understanding the Rise in Mortgage Rates

Every Thursday, Freddie Mac releases the results of their Primary Mortgage Market Survey which reveals the most recent movement in the 30-year fixed mortgage rate. Earlier this month the rate was announced as 3.01%. It was the first time in three months that the mortgage rate surpassed 3%. In a press release accompanying the survey, Sam Khater, Chief Economist at Freddie Mac, explains:

“Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June.”

The reason Khater mentions the 10-year U.S. Treasury yield is because there has been a very strong relationship between the yield and the 30-year mortgage rate over the last five decades. Here’s a graph showing that relationship:

The relationship has also been consistent throughout 2021 as evidenced by this graph:

The graph also reveals the most recent jump in mortgage rates was preceded by a jump in the 10-year Treasury rate (called out by the red circles).

So, What Impacts the Yield Rate?

According to Investopedia:

“There are a number of economic factors that impact Treasury yields, such as interest rates, inflation, and economic growth.”

Since there are currently concerns about inflation and economic growth due to the pandemic, the Treasury yield spiked last week. That spike impacted mortgage rates.

What Does This Mean for You?

Khater, in the Freddie Mac release mentioned above, says:

“We expect mortgage rates to continue to rise modestly which will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year.”

Nadia Evangelou, Senior Economist and Director of Forecasting for the National Association of Realtors (NAR), also addresses the issue:

“Consumers shouldn’t panic. Keep in mind that even though rates will increase in the following months, these rates will still be historically low. The National Association of REALTORS forecasts the 30-year fixed mortgage rate to reach 3.5% by mid-2022.”

Bottom Line

Forecasting mortgage rates is very difficult. As Mark Fleming, Chief Economist at First American once quipped:

“You know, the fallacy of economic forecasting is don’t ever try and forecast interest rates and or, more specifically, if you’re a real estate economist mortgage rates, because you will always invariably be wrong.”

That being said, if you’re either a first-time homebuyer or a current homeowner thinking of moving into a home that better fits your current needs, keep abreast of what’s happening with mortgage rates. It may very well impact your decision.

Advantages of Selling Your Metro Atlanta Home and Downsizing

Is It Time to Downsize Your Home?

New Study Reveals that Downsizing your Metro-Atlanta Home Could Save You Upwards of $100K

Once the kids have left the nest, you may be wondering what to do with all of the extra space in your home. Chances are you don’t need all your bedrooms anymore. If so, it may be a great time to sell your house and downsize. You’ve likely gained a lot of equity if you’ve lived in your home for a while. Making a move while the demand for your current house is high could be your best step forward toward the retirement goals you set out to achieve several years ago.

A recent study by StorageCafe revealed that downsizing from a 4-bedroom to a 2-bedroom home in the Atlanta-Sandy Springs-Alpharetta metro area offers over $110K in savings for homeowners. In some markets that savings are even higher. The majority of the country is currently experiencing a sellers’ market. Let’s look at a few reasons why this might make sense for you.

Advantages of Selling Your Metro-Atlanta Home and Downsizing:

Less is more. A smaller home means less upkeep, which ultimately means less spending. You’ll not only have less maintenance but can you imagine how much money you’ll save on your heating and cooling bills?

A smaller home also allows for better accessibility. We see lots of buyers in the Dunwoody and Sandy Springs areas looking for homes with owner’s suites on the main level. It’s a popular adjustment to have as couples head into their retirement years.

“When we bought the house, what surprised up the most was not the cost of the mortgage… It’s everything else that came along with the house. The maintenance, lawn care, repairs, and all the other unexpected stuff,” said Denaye Barahone, founder of Simple Families blog. She explained that when her family moved to a smaller home, they booked a vacation when they would normally be paying for landscaping on their previous, bigger home. “We [traded] stuff, home, and responsibilities for experiences and fun.”

Let’s assume you have $500 a month on your mortgage payment. In 30 years, you could have an additional $1-1.6 million in the bank to get you through the golden years.

3. Dave Ramsey, the financial guru, suggests using the proceeds from selling your current home to pay cash for a smaller one. Just imagine what you could do with no mortgage holding you down! If you can’t pay cash, aim for a 15-year fixed mortgage rate and put at least 10-20% down on your new home. Apply the $500 you saved from downsizing to your new monthly payment. At 3% interest, you could pay off a $200,000 mortgage in less than 10.5 years, saving almost $16,000 in the process.

Bottom Line

We understand that downsizing from a home where you raised your kids, made friends, and gone to church can be a hard transition to even phantom. However, if your home is becoming too much to maintain, it could be a great time to sell and take advantage of the current market.

It may have been decades since your last real estate transaction and you’re apprehensive about the process. There’s a whole team at Karen Cannon, Realtors that will walk you through the process of selling your home and finding the right fit for you.

You can explore Sand Springs real estate current listings by clicking here.

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